Posts with tag: property investment

RLA Future Renting Conference to take place in London this September

Published On: July 3, 2018 at 10:12 am

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The Residential Landlords Association (RLA)’s next Future Renting conference will be taking place in London this September.

This will provide a great opportunity to meet with other landlords and agents, as well as sharing experiences. It will also be a great chance to pick up advice, support and offers from a range of exhibitors.

The programme shows a range of expert speakers to be attending the conference, who plan to address delegates on issues such as recent legislation changes, tax, welfare reform, licensing and fire safety.

So far, the list of confirmed speakers include property expert Kate Faulkner, Dr David Smith, partner at Anthony Gold Solicitors and RLA Policy Director, and senior researcher Dr Tom Simcock of RLA research lab PEARL.

The RLA has reported that its past conferences have had positive feedback from hundreds of landlords and property professionals. Both the content and the quality of those presenting have been previously well received, so we expect this time round to be no exception.

The RLA has stated that anyone with an interest in private rented housing is welcome to attend, from landlords with just one property, to those with larger portfolios, letting agency owners, local authority councillors and officers, journalists and housing charities.

Attending such events can be a useful way of keeping updated with the recent changes within the private rented sector. Whether it is for clarification about upcoming changes, or to gain tips about improving ideas for your own investments, it can be productive to spend time around like-minded professionals.

This one-day conference will be held at Imperial College London on 13th September, at the college’s Kensington campus.

Tickets are currently available to buy, priced at £50 for members and £65 for non-members, which will also include lunch and refreshments.

Up-to-date information about the RLA’s conference can be found on the association’s website.

Bank of England May Mortgage Market Data Showing Slight Increase

Published On: July 3, 2018 at 9:29 am

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Data from the Bank of England has revealed that the mortgage market experienced a slightly more positive month during May, in relation to home purchase and remortgages.

There has been a slight increase for both, following a fall in lending during April.

Approvals for new home loans have risen by 2.5% to 64,526. This brings the total for that month above the previous six-month average of 63,803.

Looking at remortgages, these appear to be driving the market currently. The amount of approvals has risen by 7.7% to 50,979. This brings them above the previous six-month average of 48,494.

Mark Harris, chief executive of mortgage broker for SPF Private Clients, has commented on the Bank of England’s data: “People who need to move or sell are getting on and doing it, whether that be because of death, divorce or a job move.

“The slowdown in the market is down to the lack of discretionary movers – they are more likely to sit on their hands and delay making a decision hoping for better value in the future.

“Of course, it is all relative. If you are selling and buying, any price movements will affect you both ways, but if you have sold, are renting and waiting, then the wait continues.

“Interest rates are not likely to move in the short term at least, and the mortgage market remains ultra-competitive with lenders vying for market share.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, also commented: “At a time of year when we might have expected considerably better figures, activity is slowing as prices reach the peak of affordability in many parts of the country, due to slow wage growth and tighter lending criteria.

“The outcome is fewer listings and a stand-off between what buyers want to pay and sellers are prepared to accept in already uncertain times.”

Price Increases for Apartments Show Rise in Popularity

Published On: June 28, 2018 at 8:03 am

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Halifax has released data revealing an increase in value for the average UK apartment. Over the past five years, prices have increased by £1,252 per month, resulting in a rise of £75,074 over the period.

Although the proportion of apartments in relation to home sales makes up just 15%, the Halifax data shows that such accommodation is becoming increasingly important in relation to urban labour markets. The data shows an increase by 48% in the value of apartments between 2013 and 2018. Terraced houses also saw an increase, but not by as much, at 42%, and detached homes only increased by 27%.

Jonathan Stephens, Managing Director for Surrenden Invest, said: “The sustained level of demand for apartments in regional city centres has shown solid credentials, even in the wake of the Brexit referendum. With dynamic local economies and solid labour markets, regional cities are an enticing prospect for those looking to make capital gains, whether as owner-occupiers or investors.

“In fact, the majority of investors we work with now come to us with a regional city firmly in mind – London has lost its shine as a residential investment prospect as the UK’s other cities are producing better returns.”

The latest House Price Index from Halifax shows home values to have risen during May by 1.5%. The lender has pointed out that two reasons for this include the recent performance of the labour market, as well as low interest rates.

Russell Galley, Managing Director of Halifax, has commented: “The continuing strength of the labour market is supporting house prices. In the three months to March the number of full-time employees increased by 202,000, the biggest rise in three years. We are also seeing pay growth edging up and consumer price inflation falling, and as a result the squeeze on real earnings has started to ease. With interest rates still very low we see mortgage affordability at very manageable levels providing a further underpinning to prices.”

The UK population is expected to exceed 70 million by mid-2029, and there is a steady increase of urbanisation reported by market research company Statista, with it sitting at 82.84% in 2016, up from 80.2% in 2006. This may result in the demand for city centre apartments to remain consistent for the next few years. With apartment prices increasing at a rate faster than those of other accommodation types, they may continue to be a popular choice for investors.

10 Years for First Time Buyers to Secure a Deposit

Published On: June 26, 2018 at 8:52 am

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New figures reveal that on average, first-time-buyers have no alternative but to rent a property for a longer period of time, due to a 10 year save for a 15% deposit, despite the halt in property prices.

According to Nationwide, property prices have experienced a decline by 0.2% during the May period. In addition, annual growth plateaued to 2.4% from the previous 2.6% in April. Yet, there remains a high demand for rental properties due to the difficulty of saving for and securing a deposit for a mortgage.

During the beginning of 2018, the average single first-time-buyer would need to save for 10 and a half years if they were to raise a 15% deposit on their first property, according to recent data provided by Hamptons International.

For a first-time-buyer who began saving in the first quarter of the year, the purchasing of a property would not be possible until the autumn of 2028. Similarly, a single Londoner intending to invest in their first property would need to save for 17 years in order to raise a 15% deposit.

On the other hand, the average couple intending on buying their first home would need to save for five years in order to purchase their own property by the spring of 2023, five years less than a single first-time-buyer.

Aneisha Beveridge, an analyst at Hamptons International, commented: “Saving a deposit is still the biggest barrier to buying a first home. It takes a single person more than a decade to save up in the current climate.

“But the additional support from Help to Buy brings down the time it takes to raise a deposit by over six years for a single first-time buyer.

“Slower house price growth in the capital has meant that it’s now six months quicker for a couple, who share household spending, to save up for a 15% deposit in London.

“But it still takes a couple in London eight years to save up, twice as long as someone buying a home in the north.”

London is Dead for Buy-to-Let, but Manchester and Liverpool Stand Strong

Published On: June 22, 2018 at 8:57 am

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Rumours may have been circulating over the profitability of investing in London property for some time, but one expert is now insisting that the capital is dead for buy-to-let, with Manchester and Liverpool standing strong.

Jonathan Stephens, the Managing Director of property investment firm Surrenden Invest, has spoken out in response to a range of new statistics released over the past week.

Firstly, estate agent Cushman & Wakefield has reported that homeowners in Manchester have seen the value of their properties surge by 34% in the three years to July 2017, while those in Salford have witnessed growth of 38% over the same period. The national average is 30%.

Cushman & Wakefield’s findings are supported by the results of property portal Zoopla’s latest Sentiment Survey, which found that more than eight in ten homeowners (84%) expect property values to increase in their area, up by 14% since the survey was last taken in November 2017.

London is Dead for Buy-to-Let, but Manchester and Liverpool Stand Strong

Surrenden Invest’s new Westminster Works apartments in Birmingham

Zoopla also suggests that homeowners believe that the value of their properties will rise by a significant 6.9% over the next six months, which is the largest increase in consumer confidence since the first half of 2016.

Despite higher property prices, Greater Manchester remains an attractive investment proposition to landlords, with increasingly strong rental yields leading to annual returns of between 11-20%.

The average annual rental yield in both Manchester and Salford, according to Cushman & Wakefield, is currently 5.3%.

Julian Cotton, the Associate Director of the firm, says: “Manchester benefits from a particularly active investor market, with more than 52% of the entire housing stock lying in the private rented sector.

“Considering the historically high rates of house price inflation in both Salford and Manchester, initial rental yields remain strong at present prices. This resilience is a clear indication of underlying strong tenant demand, as rates of rental inflation come near to keeping pace with house price growth.”

At the same time, Liverpool has been named as offering some of the most profitable postcodes for buy-to-let in the UK.

Stephens explains: “The key hotspots for sales activity are without a doubt the UK’s regional cities: investors are doing their research and looking at Birmingham, Manchester and Liverpool in particular – and even further north to Newcastle.”

He believes: “The London market is really stagnant, and many investors are voting with their feet (or rather, their wallets) and passing over it altogether. There are still deals to be done there for those buying at big discounts, but the market is over-hyped following a huge over-supply of new build stock. The ongoing standoff between developers and private sellers means that it’s likely to remain stagnant until we see a price correction. Add to that the fact that there’s little, if any, prospect of meaningful capital growth in London, and that yields there have been notoriously low for years now, and it’s easy to see why regional cities are coming to the fore.

“Five years ago, investors were incredibly skeptical about any UK property investment outside of London. Now, they’re coming to us having already chosen a regional city. Investors are incredibly well informed, and thus most have no intention of buying in London. Instead, they are looking at yields of 5-6% net in cities like Manchester, Liverpool and Birmingham, along with the prospect of capital growth in the region of 5-10% year-on-year. The rental market is growing in these cities too. Manchester, for example, has seen rental market growth of 4% over the past year. This is all underpinned by significant economic growth in the UK’s regional cities.”

Landlords, what is your sentiment regarding investment hotspots across the UK? And is London really dead for buy-to-let?

BTL Outshines Major Asset Classes with Best Yield in the North

Published On: June 20, 2018 at 9:03 am

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Latest figures reveal how buy-to-let returns remains an overperformer compared to many major asset classes. Property investors in the Northern areas are benefiting from higher yields, whereas, Southern regions have the lowest yields as a result of higher property prices.

Data provided by TotallyMoney has shown that buy-to-let returns have continued to develop in recent months, despite problems that have confronted the market. Manchester, Middlesbrough, Liverpool and Edinburgh have proven to be the highest achieving regions as a result of high demand for rental properties.

Subsequent to analysis of over 580,000 properties, a stark geographical divide between the northern and southern areas of the country with the northern regions performing better and coming out on top and the South East predominantly performing unsatisfactorily.

Landlords in London have witnessed the lowest rental yields. However, excluding the capital, landlords in possession of properties in areas such as Bournemouth and Crewe are expected to receive minimal returns, in accordance with TotallyMoney’s data.

Joe Gardiner, head of brand and content at TotallyMoney, commented: “With students flocking to university cities year after year and looking for a place to live, it’s no surprise the student market is a dependable one for landlords.

“Since so many students are looking for accommodation, landlords may use this as an opportunity to drum up competition between them.

“But, due to the tenant fee ban, changes in mortgage tax relief, and tighter buy-to-let lending criteria, rental profits are now being squeezed more than ever. To maximise their returns landlords, need to be savvier and that’s where our map and mortgage comparison tool can help.”